Update on EG-08 Farm-out Agreement
Europa Oil & Gas (Holdings) plc announced an update on its EG-08 Farm-out Agreement, extending the Longstop Date to 31 July 2026 for the deal with Fuhai (Beijing) Energy Limited to farm-out a 40% interest in the EG-08 production sharing contract in offshore Equatorial Guinea. The transaction has received approval from the Ministry for Mining and Hydrocarbons Department of Equatorial Guinea and awaits Overseas Direct Investment approval from the Shandong Provincial government, which is expected in the coming weeks. Upon completion, Europa's associated company, Antler Global Limited, will hold a 40% working interest in the EG-08 PSC, with Fuhai holding 40% and GEPetrol holding 20%. The company anticipates drilling the Barracuda-1 well in early 2027.
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Further to the announcement of the FOA to Fuhai on 30 December 2025, the Company reports that the Longstop Date for completion of the transaction has by mutual agreement been extended to 31 July 2026.
The deal has received approval from the Ministry for Mining and Hydrocarbons Department of Equatorial Guinea ("MMHD"), as announced on 29 May 2026, and remains subject to Overseas Direct Investment ("ODI") approval from the Shandong Provincial government. Europa understands that the various government approvers are now satisfied with the ODI application and expects to receive this approval in the coming weeks. Following receipt of ODI approval, Fuhai will be added to the PSC and joint operating agreement, completing the farm-out process.
Europa has a 42.9% equity interest in Antler which, on completion of the FOA, will hold a 40% working interest in the EG-08 PSC, and remain as operator, with 40% held by Fuhai and the remaining 20% held by GEPetrol (Guinea Equatorial de Petróleos), the national oil company of Equatorial Guinea, representing the State's interest.
The Company expects to drill the Barracuda-1 well at the earliest opportunity, which is expected to be during early 2027.
William Holland, Chief Executive Officer of Europa, said:
"The extension of the Longstop Date reflects the practical timing required to finalise the remaining approval and complete the legal procedures of the farm-out to Fuhai. Having secured MMHD approval in May, we remain confident that we will receive ODI approval in the coming weeks and continue to make good progress with our preparations for drilling."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.